Question: answer fast as you can Consider an MNC that is exposed to the Taiwan dollar (TWD) and the Egyptian pound (EGP), 25% of the MNC's

answer fast as you can Consider an MNC that is exposed

answer fast as you can

Consider an MNC that is exposed to the Taiwan dollar (TWD) and the Egyptian pound (EGP), 25% of the MNC's funds are Taiwan dollars and 75% are pounds. The standard deviation of exchange movements is 14% for Taiwan dollars and 13% for pounds. The correlation coefficient between movements in the value of the Taiwan dollar and the pound is -0.52. Based on this information, the standard deviation of this two-currency portfolio is approximately (answer in 4 decimal places)

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